CHAPTER 14: MANAGERS AND COMMUNICATION

Let’s Get Real:

Meet The Managers

MY JOB:
BEST PART OF MY JOB:
WORST PART OF MY JOB:
BEST MANAGEMENT ADVICE EVER RECEIVED:

MY JOB:
BEST PART OF MY JOB:
WORST PART OF MY JOB:
BEST MANAGEMENT ADVICE EVER RECEIVED:

Without communication, nothing would ever get done in organizations. Managers are concerned with two types
of communication: interpersonal and organizational. We look at both in this chapter and the role they play in a
manager’s ability to be efficient and effective. Focus on the following learning outcomes as you read and study
this chapter.

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Learning Outcomes
14.1 Define the nature and function of communication.
14.2 Compare and contrast methods of interpersonal communication.
14.3 Identify barriers to effective interpersonal communication and how to overcome them.
14.4 Explain how communication can flow most effectively in organizations.
14.5 Describe how technology affects managerial communication.
14.6 Discuss contemporary issues in communication.

LEARNING OUTCOMES 14.1

THE NATURE AND FUNCTION OF COMMUNICATION

Unlike the character Bill Murray plays in Groundhog Day, Neal L. Patterson, CEO of Cerner Corporation, a health
care software development company based in Kansas City, probably wishes he could repeat one day. Upset with
the fact that employees didn’t seem to be putting in enough hours, he sent an angry and emotional e-mail to
about 400 company managers that said, in part:
We are getting less than 40 hours of work from a large number of our K.C.-based EMPLOYEES. The
parking lot is sparsely used at 8 a.m.; likewise at 5 p.m. As managers, you either do not know what
your EMPLOYEES are doing, or you do not CARE. You have created expectations on the work effort
which allowed this to happen inside Cerner, creating a very unhealthy environment. In either case,
you have a problem and you will fix it or I will replace you . . . I will hold you accountable. You have
allowed things to get to this state. You have two weeks. Tick, tock.3
Although the e-mail was meant only for the company’s managers, it was leaked and posted on an Internet
discussion site. The tone of the e-mail surprised industry analysts, investors, and, of course, Cerner’s managers
and employees. The company’s stock price dropped 22 percent over the next three days. Patterson apologized to
his employees and acknowledged, “I lit a match and started a firestorm.” This is a good example of why it’s
important for managers to understand the impact of communication.
The importance of effective communication for managers can’t be overemphasized for one specific reason:
Everything a manager does involves communicating. Not some things, but everything! A manager can’t make a
decision without information. That information has to be communicated. Once a decision is made,
communication must again take place. Otherwise, no one would know that a decision was made. The best idea,

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the most creative suggestion, the best plan, or the most effective job redesign can’t take shape without
communication.
WHAT IS COMMUNICATION?
Communication is the transfer and understanding of meaning. Note the emphasis on the transfer of meaning; this
means that if information or ideas have not been conveyed, communication hasn’t taken place. The speaker who
isn’t heard or the writer whose materials aren’t read hasn’t communicated. More importantly, however,
communication involves the understanding of meaning. For communication to be successful, the meaning must
be imparted and understood. A letter written in Arabic addressed to a person who doesn’t read Arabic can’t be
considered communication until it’s translated into a language the person does read and understand. Perfect
communication, if such a thing existed, would occur if a transmitted thought or idea was received and understood
by the receiver exactly as it was envisioned by the sender.
Another point to keep in mind is that good communication is often erroneously defined by the communicator as
agreement with the message instead of clear understanding of the message. If someone disagrees with us, we
assume that the person just didn’t fully understand our position. In other words, many of us define good
communication as having someone accept our views. But you can clearly understand what someone means and
just not agree with what the person says.
The final point we want to make about communication is that it encompasses both interpersonal
communication—communication between two or more people—and organizational communication—all the
patterns, networks, and systems of communication within an organization. Both types are important to managers.

FUNCTIONS OF COMMUNICATION
Saudi Aramco’s former President and CEO Abd Allah Jum'ah is known for focusing on adopting a strong talent
base which he considered important in the present competitive
environment, something he constantly reminds his line management
of. He made time out of his busy schedule to speak at the yearly
meeting for new employees to share his vision for the company, give
advice and answer their questions and was very interested in
recognizing and encouraging talent in the company. He even led a
company-wide innovation program available to all employees and after
choosing the finalists he met with them to hear their proposed ideas.
(Photo: Saudi Aramcoi)ii
Throughout Aramco and many other organizations, communication serves four major functions: control,
motivation, emotional expression, and information.6 Each function is equally important.
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Communication acts to control employee behavior in several ways. As we know from Chapter 9, organizations
have authority hierarchies and formal guidelines that employees are expected to follow. For instance, when
employees are required to communicate any job-related grievance to their immediate manager, to follow their
job description, or to comply with company policies, communication is being used to control. Informal
communication also controls behavior. When a work group teases a member who’s ignoring the norms by
working too hard, those individuals are informally controlling the member’s behavior.
Next, communication motivates by clarifying to employees what is to be done, how well they’re doing, and what
can be done to improve performance if it’s not up to par. As employees set specific goals, work toward those
goals, and receive feedback on progress toward goals, communication is required.
For many employees, their work group is a primary source of social interaction. The communication that takes
place within the group is a fundamental mechanism by which members share frustrations and feelings of
satisfaction. Communication, therefore, provides a release for emotional expression of feelings and for fulfillment
of social needs.
Finally, individuals and groups need information to get things done in organizations. Communication provides that
information.

communication: The transfer and understanding of meaning.

interpersonal communication: Communication between two or more people.
organizational communication: All the patterns, networks, and systems of communication within an organization.

LEARNING OUTCOME 14.2

METHODS OF INTERPERSONAL COMMUNICATION

Before communication can take place, a purpose, expressed as a message to be conveyed, must exist. It passes
between a source (the sender) and a receiver. The message is converted to symbolic form (called encoding) and
passed by way of some medium (channel) to the receiver, who retranslates the sender’s message (called
decoding). The result is the transfer of meaning from one person to another.7
Exhibit 14–1 illustrates the seven elements of the interpersonal communication process. Note that the entire
process is susceptible to noise—disturbances that interfere with the transmission, receipt, or feedback of a
message. Typical examples of noise include illegible print, phone static, inattention by the receiver, and
background sounds of machinery or coworkers. However, anything that interferes with understanding can be
noise, and noise can create distortion at any point in the communication process.

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Exhibit 14–1 The Interpersonal Communication Process- Table (Keep as is)

METHODS OF COMMUNICATING INTERPERSONALLY

Say that you need to communicate to your employees the organization’s new policy on sexual harassment; or you
want to compliment one of your workers on the extra hours she’s put in to help your team complete a customer’s
order; or you must tell one of your employees about changes to his job; or you would like to get employees’
feedback on your proposed budget for next year. In each of these instances, how would you communicate?
Managers have a wide variety of communication methods from which to choose and can use 12 questions to help
evaluate these methods:8
1. Feedback—How quickly can the receiver respond to the message?
2. Complexity capacity—Can the method effectively process complex messages?
3. Breadth potential—How many different messages can be transmitted using this method?
4. Confidentiality—Can communicators be reasonably sure their messages are received only by the
intended audience?
5. Encoding ease—Can senders easily and quickly use this channel?
6. Decoding ease—Can receivers easily and quickly decode messages?
7. Time–space constraint—Do senders and receivers need to communicate at the same time and in the
same space?
8. Cost—How much does it cost to use this method?
9. Interpersonal warmth—How well does this method convey interpersonal warmth?
10. Formality—Does this method have the needed amount of formality?

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 11. Scanability—Does this method allow the message to be easily browsed or scanned for relevant
information?
12. Time of consumption—Does the sender or receiver exercise the most control over when the message is
dealt with?

Exhibit 14–2 provides a comparison of various communication methods. Which method a manager ultimately
chooses should reflect the needs of the sender, the attributes of the message, the attributes of the channel, and
the needs of the receiver. For instance, if you need to communicate to an employee the changes being made in
her job, face-to-face communication would be a better choice than a memo because you want to be able to
address immediately any questions and concerns that she might have.
An important part of interpersonal communication is nonverbal communication—that is, communication
transmitted without words. Some of the most meaningful communications are neither spoken nor written. When
a college instructor is teaching a class, she doesn’t need words to tell her that students are tuned out when they
begin to read a newspaper in the middle of class. Similarly, when students start putting their book, papers, and
notebooks away, the message is clear: Class time is about over. The size of a person’s office or the clothes he or
she wears also convey messages to others. Although these are all forms of nonverbal communication, the best-
known types are body language and verbal intonation.
Body language refers to gestures, facial expressions, and other body movements that convey meaning. A person
frowning “says” something different than a person smiling. Hand motions, facial expressions, and other gestures
can communicate emotions or temperaments such as aggression, fear, shyness, arrogance, joy, and anger.
Knowing the meaning behind someone’s body movements and learning how to put forth your best body language
can help you personally and professionally.9

Message: A purpose to be conveyed.

interpersonal communication process:The seven elements involved in transferring meaning from one person to another.
nonverbal communication: Communication transmitted without words.
Encoding: Converting a message into symbols.
body language: Gestures, facial configurations, and other body movements that convey meaning.
Noise: Any disturbances that interfere with the transmission, receipt, or feedback of a message.
Channel: The medium along which a message travels.
Decoding: Retranslating a sender’s message.

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Exhibit 14-2 Comparison of Communication Methods

Verbal intonation refers to the emphasis someone gives to words or phrases that conveys meaning. To illustrate
how intonations can change the meaning of a message, suppose that a student asks an instructor a question. The
instructor replies, “What do you mean by that?” The student’s reaction will vary, depending on the tone of the
instructor’s response. A soft, smooth vocal tone conveys interest and creates a different meaning from one that is
abrasive and puts a strong emphasis on saying the last word. Most of us would view the first intonation as coming
from someone sincerely interested in clarifying the student’s concern, whereas the second suggests that the
person is defensive or aggressive.
Managers need to remember that as they communicate, the nonverbal component usually carries the greatest
impact. It’s not what you say but how you say it.

LEARNING OUTCOME 14.3

EFFECTIVE INTERPERSONAL COMMUNICATION

Managers face barriers that can distort the interpersonal communication process. Let’s look at these barriers to
effective communication.

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BARRIERS TO COMMUNICATION
Filtering. Filtering is the deliberate manipulation of information to make it appear more favorable to the receiver.
For example, when a person tells his or her manager what the manager wants to hear, information is being
filtered. Or if information being communicated up through organizational levels is condensed by senders, that’s
filtering.

verbal intonationAn emphasis given to words or phrases that conveys meaning.

filteringThe deliberate manipulation of information to make it appear more favorable to the receiver.

How much filtering takes place tends to be a function of the number of hierarchical levels in the organization and
the organizational culture; more levels mean more opportunities for filtering. As organizations use more
collaborative, cooperative work arrangements, information filtering may become less of a problem. In addition, e-
mail reduces filtering because communication is more direct. Finally, an organization’s culture encourages or
discourages filtering based on the type of behavior it rewards. If organizational rewards emphasize style and
appearance, managers may be motivated to filter communications in their favor.
Emotions. How a receiver feels when he or she receives a message influences how he or she interprets it. Extreme
emotions are most likely to hinder effective communication. In such instances, we often disregard our rational
and objective thinking processes and substitute emotional judgments.
Information Overload. A marketing manager goes on a week-long sales trip to Turkey, where he doesn’t have
access to his e-mail, and he faces 1,000 messages on his return. It’s not possible to fully read and respond to each
message without facing information overload, which is when information exceeds a person’s processing capacity.
Today’s employees frequently complain of information overload. Statistics show that the average business e-mail
user devotes 107 minutes per day to e-mail—about 25 percent of the workday. Other statistics show that
employees send and receive an average of 150 e-mail messages every day. And the number of worldwide e-mail
messages sent daily is a staggering 97.3 billion.11 The demands of keeping up with e-mail, text messages, phone
calls, faxes, meetings, and professional reading create an onslaught of data. What happens when individuals have
more information than they can process? They tend to ignore, pass over, forget, or selectively choose
information. Or, they may stop communicating. In any case, the result is lost information and ineffective
communication.

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Managing workforce Diversity
The Communication Styles of Men and Women
“You don’t understand what I’m saying, and you never listen!” “You’re making a big deal out of nothing.” Have
you said statements like these to friends of the opposite sex? Most of us probably have! Research shows, as does
personal experience, that men and women communicate differently.10
Deborah Tannen has studied the ways that men and women communicate and reports some interesting
differences. The essence of her research is that men use talk to emphasize status, while women use it to create
connection. She states that communication between the sexes can be a continual balancing act of juggling our
conflicting needs for intimacy, which suggests closeness and commonality, and independence, which emphasizes
separateness and differences. It’s no wonder, then, that communication problems arise! Women speak and hear a
language of connection and intimacy. Men hear and speak a language of status and independence. For many men,
conversations are merely a way to preserve independence and maintain status in a hierarchical social order. Yet
for many women, conversations are negotiations for closeness and are used to seek out support and
confirmation. Let’s look at a few examples of what Tannen described.
Men frequently complain that women talk on and on about their problems. Women, however, criticize men for
not listening. What’s happening is that when a man hears a woman talking about a problem, he frequently asserts
his desire for independence and control by offering solutions. Many women, in contrast, view conversing about a
problem as a way to promote closeness. The woman talks about a problem to gain support and connection, not to
get the male’s advice.
Here’s another example: Men are often more direct than women in conversation. A man might say, “I think you’re
wrong on that point.” A woman might say, “Have you looked at the marketing department’s research report on
that issue?” The implication in the woman’s comment is that the report will point out the error. Men frequently
misread women’s indirectness as “covert” or “sneaky,” but women aren’t as concerned as men with the status
and one-upmanship that directness often creates.
Finally, men often criticize women for seeming to apologize all the time. Men tend to see the phrase “I’m sorry”
as a sign of weakness because they interpret the phrase to mean the woman is accepting blame, when he may
know she’s not to blame. The woman also knows she’s not at fault. Yet she’s typically using “I’m sorry” to express
regret: “I know you must feel bad about this, and I do, too.”
How can these differences in communication styles be managed? Keeping gender differences from becoming
persistent barriers to effective communication requires acceptance, understanding, and a commitment to
communicate adaptively with each other. Both men and women need to acknowledge that there are differences
in communication styles, that one style isn’t better than the other, and that it takes real effort to “talk” with each
other successfully.

Defensiveness. When people feel that they’re being threatened, they tend to react in ways that hinder effective
communication and reduce their ability to achieve mutual understanding. They become defensive—verbally
attacking others, making sarcastic remarks, being overly judgmental, or questioning others’ motives.12
Language. Novelist & poet Jubran Khalil Jubran and singer Omar Diab both spoke Arabic but the language they
used was vastly different. (18=21 WORDS) Words mean different things to different people. Age, education, and
cultural background are three of the most obvious variables that influence the language a person uses and the
definitions he or she gives to words.
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In an organization, employees come from diverse backgrounds and have different patterns of speech. Even
employees who work for the same organization but in different departments often have different jargon—
specialized terminology or technical language that members of the group use to communicate among themselves.
National Culture. For technological and cultural reasons, Chinese people dislike voice mail.13 This illustrates how
communication differences can arise from national culture as well as different languages. For example, let’s
compare countries that value individualism (such as the United States) with countries that emphasize collectivism
(such as many Arab countries). In an individualistic country such as the United States, communication is relatively
formal and is clearly spelled out. Managers rely heavily on reports, memos, and other formal forms of
communication. In a collectivist country such as some Arab countries, there’s more interpersonal contact, and
face-to-face communication is encouraged. An Arab manager extensively consults with subordinates about an
issue and then draws up a formal document to outline the agreement that was made.

Cultures are differentiated by the level of context. A high context culture is the one that uses least amount of
words and depends on its surroundings in communication, such as the Arab culture. While in comparison a low-
context culture such as the United States, depends more on words to communicate rather than its surroundings.
Arabs may consider American business people as extremely direct and in need for every single detail to be
explained to them. Americans may see Arab business people as vague, indirect and overly concerned with
insignificant details.iii Business meetings and decisions in the Arab world are done in a way that might be seen to
foreigners as chaotic, disorganized, and with constant interruptions. This is the case because initial meetings for
Arabs are supposed to build relationships and foster an idea about the other person. iv

OVERCOMING BARRIERS TO COMMUNICATION

On average, an individual must hear new information seven times before he or she truly understands.15 In light of
this fact and the communication barriers just described, what can managers do to be more effective
communicators?
Using Feedback. Many communication problems can be directly attributed to misunderstanding and inaccuracies.
These problems are less likely to occur if the manager gets feedback, both verbal and nonverbal.
A manager can ask questions about a message to determine whether it was received and understood as intended.
Or the manager can ask the receiver to restate the message in his or her own words. If the manager hears what
was intended, understanding and accuracy should improve. Feedback can also be more subtle; general comments
can give a manager a sense of the receiver’s reaction to a message.

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Feedback doesn’t have to be verbal. Say that a sales manager e-mails information about a new monthly sales
report that all sales representatives will need to complete, and some of them don’t turn it in; the sales manager
has received feedback, which suggests that the sales manager needs to clarify the initial communication. Similarly,
managers can look for nonverbal cues to tell whether someone’s getting the message.

information overload: A situation in which information exceeds a person’s processing capacity.

Jargon: Specialized terminology or technical language that members of a group use to communicate among themselves.

Simplifying Language. Because language can be a barrier, managers should consider the audience to whom the
message is directed and tailor the language to those individuals. Remember that effective communication is
achieved when a message is both received and understood. This means, for example, that a hospital administrator
should always try to communicate in clear, easily understood terms and to use language tailored to different
employee groups. Messages to the surgical staff should be purposefully different from those used with office
employees. Jargon can facilitate understanding if it’s used within a group that knows what it means, but it can
cause problems when used with people who don’t understand it.
Listening Actively. When someone talks, we hear. But often we don’t listen. Listening is an active search for
meaning, whereas hearing is passive. In listening, the receiver is also putting effort into the communication.
Many of us are poor listeners. Why? Because it’s difficult, and most of us would rather do the talking. Listening, in
fact, is often more tiring than talking. Unlike hearing, active listening, which is listening for full meaning without
making premature judgments or interpretations, demands total concentration. The average person normally
speaks at a rate of about 125 to 200 words per minute. However, the average listener can comprehend up to 400
words per minute.16 The difference leaves lots of idle brain time and opportunities for the mind to wander.
Active listening is enhanced by developing empathy with the sender—that is, by putting yourself in the sender’s
position. Because senders differ in attitudes, interests, needs, and expectations, empathy makes it easier to
understand the actual content of a message. An empathetic listener reserves judgment on the message’s content
and carefully listens to what is being said. The goal is to improve one’s ability to get the full meaning of a
communication without distorting it through premature judgments or interpretations. Other specific behaviors
that active listeners demonstrate are listed in Exhibit 14–3.

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Exhibit 14–3 Active Listening Behaviors- Table (Keep as is)

Constraining Emotions. It would be naïve to assume that managers always communicate in a rational manner. We
know that emotions can cloud and distort communication. A manager who’s upset about an issue is more likely to
misconstrue incoming messages and fail to communicate his or her outgoing messages clearly and accurately.
What to do? The simplest answer is to calm down and get emotions under control before communicating.
Watching Nonverbal Cues. Actions speak louder than words, so it’s important to make sure your actions align
with and reinforce the words that go along with them. An effective communicator watches his or her nonverbal
cues to ensure that they convey the desired message.

LEARNING OUTCOME 14.4

ORGANIZATIONAL COMMUNICATION

An understanding of managerial communication isn’t possible without looking at organizational communication.

In this section, we look at several important aspects of organizational communication, including formal versus
informal communication, the flow patterns of communication, and formal and informal communication networks.

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FORMAL VERSUS INFORMAL COMMUNICATION
Communication within an organization is described as formal or informal. Formal communication refers to
communication that takes place within prescribed organizational work arrangements. For example, when a
manager asks an employee to complete a task, that’s formal communication, as is an employee communicating a
problem to his or her manager.
Informal communication is organizational communication not defined by the organization’s structural hierarchy.
When employees talk with each other in the lunch room, as they pass in hallways, or as they’re exercising at the
company wellness facility, that’s informal communication. Employees form friendships and communicate with
each other. The informal communication system fulfills two purposes in organizations: (1) It permits employees to
satisfy their need for social interaction, and (2) it can improve an organization’s performance by creating
alternative, and frequently faster and more efficient, channels of communication.

DIRECTION OF COMMUNICATION FLOW

Let’s look at the ways that organizational communication can flow: downward, upward, laterally, or diagonally.
Downward Communication. By holding daily meetings and weekly cleaning projects for room attendants, team
members at InterContinental Phoenicia Beirut help employees know exactly what is expected of them. Mountaha
Trad, the Housekeeping technician has made great improvements to the procedures and practices followed and
achieving a high level of service deliveryv. This is downward communication, which is any communication that
flows from a manager to employees. It’s used to inform, direct, coordinate, and evaluate employees. When
managers assign goals to their employees, they’re using downward communication. They’re also using downward
communication when they provide employees with job descriptions, inform them of organizational policies and
procedures, point out problems that need attention, or evaluate employees’ performance. Downward
communication can take place through any of the communication methods described earlier.

Active Listening: Listening for full meaning without making premature judgments or interpretations.
formal communication: Communication that takes place within prescribed organizational work arrangements.
informal communication: Communication that is not defined by an organization’s structural hierarchy.

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Upward Communication. Managers rely on their employees for information. For instance, reports are given to
managers to inform them of progress toward goals or to report problems. Upward communication is
communication that flows from employees to managers. It keeps managers aware of how employees feel about
their jobs, their coworkers, and the organization in general. Managers also rely on upward communication for
ideas on how things can be improved. Some examples of upward communication include performance reports
prepared by employees, employee messages in suggestion boxes, employee attitude surveys, grievance
procedures, manager–employee discussions, and informal group sessions in which employees have the
opportunity to discuss problems with their manager or representatives of top-level management.
How much upward communication is used depends on the organizational culture. If managers have created a
climate of trust and respect and use participative decision making or empowerment, there will be considerable
upward communication as employees provide input to decisions. In a more highly structured and authoritarian
environment, upward communication still takes place, but it is limited.
Lateral Communication. Communication that takes place among employees on the same organizational level is
called lateral communication. In today’s dynamic environment, horizontal communications are frequently needed
to save time and facilitate coordination. Cross-functional teams, for instance, rely heavily on this form of
communication interaction. However, conflicts can arise if employees don’t keep their managers informed about
decisions they’ve made or actions they’ve taken.
Diagonal Communication. Diagonal communication is communication that crosses both work areas and
organizational levels. When a credit analyst communicates directly with a regional marketing manager about a
customer’s problem—note the different department and different organizational level—that’s diagonal
communication. Because of its efficiency and speed, diagonal communication can be beneficial. Increased e-mail
use facilitates diagonal communication. In many organizations, any employee can communicate by e-mail with
any other employee, regardless of organizational work area or level, even with upper-level managers. In many
organizations, CEOs have adopted an “open inbox” e-mail policy. For example, William H. Swanson, head of
defense contractor Raytheon Company, figures that he has received and answered more than 150,000 employee
e-mails. Joe Tesfai, the IT director of Jumeirah Beach International considers internal communication on a daily
basis is an important motivator that helps the staff feel more involved in the company and its goals. One way of
communication is by using emails to keep the employees updated on the daily news, events and reports, through
the intranet site, which Tesfai believes is very crucial in creating a sense of community within the group.vi
Diagonal communication also has the potential to create problems if employees don’t keep their managers
informed.

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ORGANIZATIONAL COMMUNICATION NETWORKS
The vertical and horizontal flows of organizational communication can be combined into a variety of patterns
called communication networks. Exhibit 14–4 illustrates three common communication networks.

Exhibit 14–4 Organizational Communications Network- Table (Keep as is)

Types of Communication Networks. In a chain network, communication flows according to the formal chain of
command, both downward and upward. A wheel network represents communication flowing between a clearly
identifiable and strong leader and others in a work group or team. The leader serves as the hub through whom all
communication passes. Finally, in an all-channel network, communication flows freely among all members of a
work team.
Which type of network you should use depends on your goal. Exhibit 14–4 also summarizes each network’s
effectiveness according to four criteria: speed, accuracy, the probability that a leader will emerge, and the
importance of member satisfaction. One observation is immediately apparent: No single network is best for all
situations.

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The Grapevine. We can’t leave our discussion of communication networks without discussing the grapevine—the
informal organizational communication network. The grapevine is active in almost every organization. Is it an
important source of information? You bet! One survey reported that 63 percent of employees say that they hear
about important matters first through rumors or gossip on the grapevine.19
Certainly, the grapevine is an important part of any communication network and well worth understanding.20
Acting as both a filter and a feedback mechanism, it pinpoints those bewildering issues that employees consider
important. More importantly, from a managerial point of view, it is possible to analyze what is happening on the
grapevine—what information is being passed, how information seems to flow, and what individuals seem to be
key information conduits. By staying aware of the grapevine’s flow and patterns, managers can identify issues that
concern employees, and, in turn, use the grapevine to disseminate important information. Because the grapevine
can’t be eliminated, managers should “manage” it as an important information network.
Rumors that flow along the grapevine also can never be eliminated entirely. However, managers can minimize the
negative consequences of rumors. How? By communicating openly, fully, and honestly with employees,
particularly in situations in which employees may not like proposed or actual managerial decisions. Open and
honest communication has positive benefits for an organization. A study by Watson Wyatt Worldwide concluded
that effective communication “connects employees to the business, reinforces the organization’s vision, fosters
process improvement, facilitates change, and drives business results by changing employee behavior.” For those
companies with effective communication, total returns to shareholders were 91 percent higher over a five-year
period than for companies with less effective communication. This study also showed that companies that were
highly effective communicators were four times as likely to report high levels of employee engagement as firms
that communicated less effectively.21

downward communication: Communication that flows downward from a manager to employees.

lateral communication: Communication that takes place among any employees on the same organizational level.
communication networks: The variety of patterns of vertical and horizontal flows of organizational communication.
upward communication: Communication that flows upward from employees to managers.
diagonal communication: Communication that cuts across work areas and organizational levels.
Grapevine: the informal organizational communication network

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LEARNING OUTCOME 14.5

INFORMATION TECHNOLOGY AND COMMUNICATION

Technology is changing the way we live and work. Consider the following examples: employees, managers,
housewives, and teens around the region use wireless interactive Web phones to send e-mail, surf the Web, swap
photos, and play computer games. At Aramco oil company in Saudi Arabia, a sophisticated videoconferencing
system allows it head office and branch management from the different branches located throughout Saudi
Arabia to transfer data, conduct meetings, and provide instant audio and video communication.vii Several
thousand employees at Ford use only cell phones—no land lines—at work. A recent survey of employees
showed that 93 percent of those polled use the Internet at work.22
The world of communication isn’t what it used to be! Although changing technology has been a significant source
of the environmental uncertainty facing organizations, these same technological changes have enabled managers
to coordinate employees’ work efforts in more efficient and effective ways. Information technology (IT) now
touches every aspect of almost every company’s business. The implications for the ways managers communicate
are profound.

HOW TECHNOLOGY AFFECTS MANAGERIAL COMMUNICATION

IT has radically changed the way organizational members communicate. For example, it has significantly improved
a manager’s ability to monitor individual and team performance, has allowed employees to have more complete
information to make faster decisions, and has provided employees more opportunities to collaborate and share
information. In addition, IT has made it possible for people in organizations to be fully accessible, any time,
regardless of where they are. Employees don’t have to be at their desk with their computer running to
communicate with others in the organization. Two IT developments that are especially significant for managerial
communication are networked systems and wireless capabilities.
Networked Systems. In a networked system, an organization’s computers are linked. Organizational members can
communicate with each other and tap into information whether they’re down the hall, across town, or halfway
around the world. In this chapter, we’re not looking at the mechanics of how a network system works but at its
communication applications, including e-mail, instant messaging, blogs and wikis, voice mail, fax, teleconferencing
and videoconferencing, and intranets.

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Wireless Capabilities. At ABB Group conglomerate, Middle East, mobile technology gives employees easy access
to stay connected. Regional CIO Faisal Khashouf explains that his workforce’s job is purely on-site, and being
mobile is the only solution since most of the work involves immediate replies or else they would have to wait
until they are back in the office to reply which might take up to a week. He also adds that being mobile is cost-
effective compared to building a database for employees to stay connected in the middle of the desert, which is
too expensive and not easy, especially when connectivity cannot easily reach such locations.viii As this example
shows, wireless communication technology has the ability to improve work for managers and employees. Even
Internet access is available through Wi-Fi and WiMAX hot spots, which are locations where users gain wireless
access. The number of hot spot locations continues to grow. Surveys show that airports are the number-one spot
where people use public Wi-Fi, hotels are second, and coffee shops/cafés are third. Riyadh has become Saudi
Arabia’s first “Smart City” allowing anyone with a wireless computer or cell phone, who happens to be at Prince
Mohammad Ibn Abdul Aziz Street’s hot spot location, free wireless internet service.ix And the number of mobile
communication users keeps increasing.26 Employees don’t have to be at their desks to communicate with others
in the organization. As wireless technology continues to improve, we’ll see more organizational members using it
as a way to collaborate and share information.

thinking critically about Ethics

According to a survey by Harris Interactive, 69 percent of employees spend time at non-work-related Web sites,
and 55 percent send and receive personal e-mails at work. And younger employees are even more likely to use
employer-furnished computers for personal reasons: 77 percent of workers aged 18 to 34 access the Internet at
work for personal reasons, and 72 percent check their personal e-mail accounts at work. A survey by Salary.com
and AOL found that personal Web surfing was the top method of goofing off at work. In addition, funny stories,
jokes, and pictures make their way from one employee’s e-mail inbox to another, to another, and so forth. An elf
bowling game sent by e-mail was a favorite diversion during the holiday season.
Although these may seem like fun and harmless activities, it’s estimated that such technological distractions cost
businesses more than $54 billion annually. There’s a high dollar cost associated with using the Internet at work for
other than business reasons, but is there a psychological benefit to be gained by letting employees do something
to relieve the stress of pressure-packed jobs? What ethical issues are associated with widely available Internet
access at work for both employees and organizations?

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HOW INFORMATION TECHNOLOGY AFFECTS ORGANIZATIONS
Monsanto Company wanted to raise the visibility of some projects and to make a stronger argument for
bioengineered crops. Using a YouTube approach, the company sent camera crews to the Philippines, Australia,
and other countries to film testimonials from farmers using Monsanto products to grow bioengineered crops. The
clips were posted on a company Web site, which now attracts more than 15,000 visitors per month. The PR
manager in charge of the project said, “When the people involved relate how their life has changed and you
actually see it, it’s more compelling.”27 That’s the power of IT at work. Employees—working in teams or as
individuals—need information to make decisions and to do their work. It’s clear that technology can significantly
affect the way that organizational members communicate, share information, and do their work.

In the airline business, communication is extremely important:

communication between the pilot and the traffic controllers;
communication between the flight crew and passengers; communication
between passenger, airlines, and ticketing agencies. Technology has
transformed the way airplanes are flown and have structurally changed
the way airlines operate their business.

Alain Bourjeily, general manager for Bayanat Airports asserts that

advanced technology is providing a mechanism of communication that
extends beyond the boundaries of an airport terminal. "Internet based
applications can help in communicating with remote locations outside of
the airport's grounds such as hotels and offices but it is satellite
technology that is providing the most benefits, particularly with air traffic
control."*
Cowell, Sarah. August 17, 2008. Common Ground. Airport Middle East.
HTTP://WWW.ABUDHABIAIRPORT.AE/THEAIRPORT/INDEX.ASP

Communication and the exchange of information among organizational members are no longer constrained by
geography or time. Collaborative work efforts among widely dispersed individuals and teams, sharing of
information, and integration of decisions and work throughout an entire organization have the potential to
increase organizational efficiency and effectiveness. And while the economic benefits of IT are obvious, managers
must not forget the psychological drawbacks.28 For instance, what is the psychological cost of an employee always
being accessible? Will there be increased pressure for employees to “check in” even during their off hours? How
important is it for employees to separate their work and personal lives? There are no easy answers to these
questions, and managers will have to face these issues, many of which we’ve addressed in our “Managing in a
Virtual World” boxes throughout the book.

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LEARNING OUTCOME 14.6

COMMUNICATION ISSUES IN TODAY’S ORGANIZATIONS

Maryam Al Swedi, Human Resources and Administrative Manager at Mohammed Bin Rashid Housing
Establishment, considers listening an important factor for good communication. Having regular staff meeting,
monthly dialogue sessions for the organization to learn more about the employees and their worries and needs as
well as conveying important messages and decisions and providing employees with updates on company
information, are all important for the success of the organization.x

Mr. Sami Gargash, Duty Manager Director at Mohammed Bin

Rashid Housing Establishment (MBRHE), meeting with two
departments outside of the establishment to discuss issues
related to employee satisfaction.
Internal communication vital for success at Mohammed
Bin Rashid Housing Establishment (Press Release)
http://www.ameinfo.com/185504.html

Being an effective communicator in today’s organizations means being connected—most importantly to

employees and customers, but to any of the organization’s stakeholders. In this section, we examine four
communication issues of particular significance to today’s managers: managing communication in an Internet
world, managing the organization’s knowledge resources, communicating with customers, and using politically
correct communication.

MANAGING COMMUNICATION IN AN INTERNET WORLD

E-mail can consume employees, but it’s not always easy for employees to let go of it. But e-mail is only one
communication challenge in this Internet world. A recent survey found that 20 percent of employees at large
companies say they contribute regularly to blogs, social networks, wikis, and other Web services.30 Managers are
learning, the hard way sometimes, that all this new technology has created special communication challenges.
The two main ones are (1) legal and security issues and (2) lack of personal interaction.
Legal and Security Issues. Chevron paid $2.2 million to settle a sexual-harassment lawsuit stemming from
inappropriate jokes being sent by employees over company e-mail. UK firm Norwich Union had to pay £450,000 in
an out-of-court settlement after an employee sent an e-mail stating that company competitor Western Provident
Association was in financial difficulties. Whole Foods Market was investigated by federal regulators and its board
after CEO John P. Mackey used a pseu-donym to post comments on a blog, attacking the company’s rival Wild
Oats Markets.31
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Although e-mail, blogs, and other forms of online communication are quick and easy ways to communicate,
managers need to be aware of potential legal problems that could result from inappropriate usage. Electronic
information is potentially admissible in court. For instance, during the Enron trial, prosecutors entered into
evidence e-mails and other documents they say showed that the defendants defrauded investors. Says one
expert, “Today, e-mail and instant messaging are the electronic equivalent of DNA evidence.”32
Legal problems aren’t the only issue; security concerns are important as well. A survey addressing outbound e-
mail and content security found that 26 percent of the companies surveyed saw their businesses affected by the
exposure of sensitive or embarrassing information.33 Managers need to ensure that confidential information is
kept confidential. Employee e-mails and blogs should not communicate—inadvertently or purposely—proprietary
information. Corporate computer and e-mail systems should be protected against hackers (people who try to gain
unauthorized access to computer systems) and spam (electronic junk mail). These are serious issues that must be
addressed if the benefits of communication technology are to be realized.
Personal Interaction. Another communication challenge posed by the Internet age is the lack of personal
interaction.34 Even when two people are communicating face-to-face, understanding is not always achieved.
However, it can be especially challenging to achieve understanding and collaborate on getting work done when
communication takes place in a virtual environment. In response, some companies have banned e-mail on certain
days, as we saw earlier. Others have simply encouraged employees to do more in-person collaboration. Yet, there
are situations and times when personal interaction isn’t physically possible, such as when your colleagues work
across the continent or even on the other side of the globe. In such instances, using real-time collaboration
software (such as private workplace wikis, blogs, instant messaging systems, and other types of groupware) may
be a better communication choice than sending an e-mail and waiting for a response.35 Instead of fighting it, some
companies are encouraging employees to utilize the power of social networks to collaborate on work and to build
strong connections. This is especially appealing to younger workers who are comfortable with this communication
medium. Some companies have gone so far as to create their own in-house social networks. For instance Fadi
Matar, Chief Marketing Officer of Burgan Bank, Kuwait, talks about the importance of internal communication,
"To work together, one must ‘think' together. It's the key to unified efforts. This is why internal communications is
an ongoing interactive process at our Bank. We open dialogue, combine our skills and in the process, we learn and
grow together.", As a result of this belief, Burgan Bank redesigned its intranet site for employees to be
continuously updated with new features on the bank’s services, and operations and help employees to always
stay informed of any developments.xi

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 “We’ve realized that a communications approach that bases
its foundation in honesty, accuracy and simplicity is the
most effective and enduring. We also firmly believe that both
internal communications and external communications should
be in consonance with the core principles of who and what
we are as a banking institution.”

Fadi Matar
Chief Marketing Officer
Burgan Bank

MANAGING AN ORGANIZATION’S KNOWLEDGE RESOURCES

Saline Water Conversion Corporation (SWCC) in Saudi Arabia is one of the largest desalination corporations in the
world, supplying around 20% of the world’s quantity of desalinated water. With 30 plants distributed around the
Kingdom, work was done to improve the company. One change made was to create a centralized database of the
company’s applications, data and information, located at the company’s headquarters in Riyadh and link it to all
the other plants. With the data updated on a daily basis, this action provided easy web access for all employees
and had an instant effect on the efficiency of their work and production. xii That’s what today’s managers need to
do with the organization’s knowledge resources—make it easy for employees to communicate and share their
knowledge so they can learn from each other ways to do their jobs more effectively and efficiently. One way
organizations can do this is to build online information databases that employees can access. For example Al
Batha Group’s (UAE) IT manager Saji Oommen, replaced route accounting, which was previously performed
manually and was prone to error and was time consuming, by a mobile computing application to computerize its
sales operations and strengthen its competitive side. The solution provided easy access to the company’s
inventory and helped create a simple profile system of customers. This helped Al Batha’s sales team have easy
access to the company’s database which included product information and pricing, as well as customer accounts,
and allowed them to generate the correct decisions based on the available information, which improved
customer service and speeded up sales transactions. xiii This is one example that shows how managers can use
communication tools to manage this valuable organizational resource called knowledge.

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In addition to online information databases for sharing knowledge, some knowledge management experts suggest
that organizations create communities of practice, which are “groups of people who share a concern, a set of
problems, or a passion about a topic, and who deepen their knowledge and expertise in that area by interacting
on an ongoing basis.”39 The keys to making such communities work are that the group must actually meet in some
fashion on a regular basis and also use its information exchanges to improve in some way. For example, repair
technicians at Xerox tell “war stories” to communicate their experiences and to help others solve difficult
problems with repairing machines.40 To make these communities of practice work, it’s important to maintain
strong human interactions through communication; interactive Web sites, e-mail, and videoconferencing are
essential tools. In addition, these groups face the same communication problems that individuals face—filtering,
emotions, defensiveness, over-documentation, and so forth. However, groups can resolve these issues by
focusing on the suggestions discussed earlier.

THE ROLE OF COMMUNICATION IN CUSTOMER SERVICE

You’ve been a customer many times; in fact, you probably find yourself in customer service encounters several
times a day. So what does this have to do with communication? As it turns out, a lot! What communication takes
place and how it takes place can have a significant impact on a customer’s satisfaction with the service and the
likelihood of being a repeat customer. Managers in service organizations need to make sure that employees who
interact with customers are communicating appropriately and effectively with those customers. How? By first
recognizing the three components in any service delivery process: the customer, the service organization, and the
individual service provider.41 Each plays a role in whether communication is working. Obviously, managers don’t
have a lot of control over what or how the customer communicates, but they can influence the other two.
An organization with a strong service culture already values taking care of customers—finding out what their
needs are, meeting those needs, and following up to make sure that their needs were met satisfactorily. Each of
these activities involves communication, whether face-to-face, by phone or e-mail, or through other channels. In
addition, communication is part of the specific customer service strategies the organization pursues. One strategy
that many service organizations use is personalization. For instance, at Burj Al Arab Hotel customers are provided
with more than a clean bed and room. The hotel’s database allows service to be personalized to customers’
expectations. One of the hotel’s customized services includes respecting their cultural background, Delafosse
explains that “For guests coming from the Gulf, a bottle of champagne is not placed in their suite, while for
Chinese guests some Chinese facilities would be arranged in their suites.”xiv Communication plays an important
role in the hotel’s customer personalization strategy.

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Communication is also important to individual service providers or contact employees. The quality of the
interpersonal interaction between a customer and a contact employee influences customer satisfaction.43 This is
especially true when the service encounter isn’t up to expectations. People on the frontline involved with such
“critical service encounters” are often the first to hear about or notice service failures or breakdowns. They must
decide how and what to communicate during these instances. Their ability to listen actively and communicate
appropriately with customers has a big impact on whether a situation is resolved to the customer’s satisfaction or
spirals out of control. Another important communication concern for an individual service provider is making sure
that he or she has the information needed to deal with customers efficiently and effectively. If a service provider
doesn’t personally have the information, there should be some way to get the information easily and promptly.44

THOUGHTFUL (“POLITICALLY CORRECT”) COMMUNICATION

Sears tells its employees to use phrases such as “person with a disability” instead of “disabled person” when
writing or speaking about people with disabilities. The company also suggests that when talking with a customer
in a wheelchair for more than a few minutes, an employee should place himself or herself at the customer’s eye
level by sitting down to make a more comfortable atmosphere for everyone.45 These suggestions, provided in an
employee brochure that discusses assisting customers with disabilities, reflect the importance of politically correct
communication.
How you communicate with someone who isn’t like you, what terms you use in addressing a female customer, or
what words you use to describe a colleague who is wheelchair-bound can mean the difference between losing a
client, an employee, a lawsuit, a harassment claim, or a job.46
Most of us are acutely aware of how our vocabulary has been modified to reflect political correctness. For
instance, most of us refrain from using words such as handicapped, blind, and elderly and use instead terms such
as physically challenged, visually impaired, or senior. We must be sensitive to others’ feelings. Certain words do
stereotype, intimidate, and insult individuals. With an increasingly diverse workforce, we must be sensitive to how
words might offend others. While it’s complicating our vocabulary and making it more difficult for people to
communicate, it is something managers can’t ignore.
Words are the primary means by which people communicate. When we eliminate words from use because
they’re politically incorrect, we reduce our options for conveying messages in the clearest and most accurate
form. For the most part, the larger the vocabulary used by a sender and a receiver, the greater the opportunity to
accurately transmit messages. By removing certain words from our vocabulary, we make it more difficult to
communicate accurately. When we replace these words with new ones whose meanings are less well understand,
we reduce the likelihood that our messages will be received as we had intended them.

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We must be sensitive to how our choice of words might offend others. But we need to acknowledge that
politically correct language restricts communication clarity. Nothing suggests that this increased communication
ambiguity is likely to be reduced anytime soon. This is just another communication challenge for managers.

communities of practice: Groups of people who share a concern, a set of problems, or a passion about a topic and who deepen
their knowledge and expertise in that area by interacting on an ongoing basis.

Communication patterns in the Arab Culture (Ellen Feghali)

When it comes to communication, people in different cultures have different ways of communicating and
interacting with each other. Several studies were made in relation to communication in the Arab world. Ellen
Feghali, a communications consultant, explains communication patterns in the Arab worldxv.

While Arabic is one language, there are many “forms” of Arabic. There is the (1) unequalled Arabic of the Quran,
(2) the modern standard Arabic or Fusha used by government officials, media, and public figures across the Arab
world, and (3) the Colloquial Arabic, used in every day communication which differs significantly from one country
to another. Arabs switch codes very frequently, whether switching dialects, or switching from Arabic to English or
French. Code switching helps bilinguals to choose certain appropriate words that have certain meanings or points
and might help in adjusting the course of a conversation. Repetition is a major feature of Arabic communication;
it is a core factor of the Arabic language, regardless of the situation. Even though Arabs tend to use a lot of
proverbs and ritualistic phrases when complimenting others, many repetitive formulas seem to be related to
religious oaths, but while they are used in swearing for testimony, they are also used in the daily communication
between Arabs. Such devout formula include inshallah (if God wills it), el hamdulillah, hamdillah, kattirkhairallah
and ishkorallah (Thanks be to God), and sm ‘allah (In the name of God). In Arab communication, we find a lot of
indirectness. This is not indented to be a negative action; instead it is done to avoid unpleasant or embarrassing
situations. In such situations Arabs tend to go along with what others say or want, also described as Arab
musayara. As explained earlier, Arab culture is a high-context culture, with little information actually said in words
and more dependency is given to the physical surroundings, and courtesy and saving-face is very important.
Another characteristic of Arabic communicative style is elaborateness. Two factors that are found in many Arab
communication styles that explain elaborateness are exaggeration (mubalagha) and assertion (tawkeed). Arab
speakers tend to find it more effective to use more words than what would be seen as necessary by speakers in
other languages. Arabs use mostly “presentation” persuasion, which means that a large part of the
persuasiveness of an idea lies in the way this idea is presented. That’s why Arab speakers tend to repeat and
resort to emotional appeal (Affectiveness) in their speech. Some non-Arabs may perceive this to be a sign of lack
of objectivity, which may cause some intercultural communication difficulties.

Arabs use lots of gestures in their speech. They tend to be indirect in their verbal communication but they
establish eye contact within same-sex communicators. Sometimes, when two individuals of different sexes or
varying powers communicate, eye contact tends to be minimized. A communicator in formal or social situations
may lower his gaze as a sign of respect and reverence to the other. Arab societies are considered “contact”
cultures, where people (within same sex communicators) stand close together and touch frequently. Arabs seem
to be more tolerant –compared to many Westerners- to close proximity in public spaces.

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i
http://www.aramcoexpats.com/Articles/Pipeline/Saudi-Aramco-News/Industry-News/3165.aspx
ii
By Yasser M Mufti, “A Tribute To Saudi Aramco’s Former President And CEO 'Abd Allah Jum'ah”, Middle East Economic
Survey Website,
http://www.mees.com/postedarticles/oped/v52n03-5OD01.htm, 19 January 2009

iii
By David A. Victor, “Doing Business in the Arab World”, Reference for Business Website, Encyclopedia of Business, 2nd ed.
http://www.referenceforbusiness.com/encyclopedia/A-Ar/Arab-World-Doing-Business-in-the.html, 30 April 2010

iv
By Neil Payne, “Doing Business in the Middle East”, Buzzle Website,
http://www.buzzle.com/editorials/11-24-2004-62074.asp, 21 April 2010
v
By Louise Oakley “Awards Countdown: Housekeeper of the Year”, Hotelier Middle East Website,
http://www.hoteliermiddleeast.com/5753-awards-countdown-housekeeper-of-the-year/5/, 16 September 2009

vi
By Alicia Buller, “Maximizing Morale”, ArabianBusiness Website,
http://www.arabianbusiness.com/490992, 25 September 2004

vii
“Al Alamiah Computer Systems signs contract for supplying video conferencing equipment to Aramco”, Menareport
Website,
http://www.menareport.com/en/business/175169/&searchWords=motivation, 6 July 2004

viii
By Imthishan Giado “Free as a bird”, ArabianBusiness Website,
http://www.arabianbusiness.com/586222-free-as-a-bird, 19 April 2010

ix
“Integrated Telecom Company launches the most advanced data communication services in KSA”, Ameinfo Website,
http://www.ameinfo.com/116122.html, 9 April 2007

x
“Internal communication vital for success at Mohammed Bin Rashid Housing Establishment”, Ameinfo Website,
http://www.ameinfo.com/185504.html, 19 February 2009

xi
“Burgan Bank: keeping employees connected”, ArabianBusiness Website,
http://www.arabianbusiness.com/press_releases/detail/19003, 19 May 2008

xiixii
Technology on tap, by Daniel Stanton, ArabianBusiness Website,
http://www.arabianbusiness.com/494361-technology-on-tap,5 Dec 2006

xiii
“Mobile Automation, ArabianBusiness Website,
http://www.arabianbusiness.com/490367, 25 May 2003”

xiv
Information from Jumeirah Group homepage,
http://www.jumeirah.com/Hotels-and-Resorts/Destinations/Dubai/Burj-Al-Arab/, 19 March 2010

Credit Suisse by Daniel Huber, Group Homepage, Middle East &Africa , Head Publications, E-magazine Website,
http://emagazine.credit-suisse.com/app/article/index.cfm?fuseaction=OpenArticle&aoid=158173&lang=EN, 07 July 2006

xv
Fegahli, E. 1997. Arab Cultural communication patterns. International Journal of Intercultural Relations, 21 (3): 345-378.

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